I was wondering does a towns population of around 1000 influence my decision to purchase +ve geared property or should I just look at my returns?[wacko]
take many factors into consideration. Theres no point having good returns only to have tenants from Hell!
“If You never never ask, you’ll never never know”
Thanks for the advice Geo. Are you saying that in a smaller populated town the luxury to choose tennents may be limited?
Every situation has its ups and downs.I like to look outside the square.Go where no man (investor) has gone before.Like Steve says.”Success comes from doing things differently”
Most people say look at statistics look at this and that.Look at population.Well I have to disagree.I say look everywhere.Because there are some little gems out there just waiting for the right person to see their potential.Then listen to every one bitch cause they didnt have the forsight to look outside the square.
Russ.Hi Staffreit!
I would certainly look at statistics as well, for instance:Is there a population decline in the area and why?
No good buying in an area where people are leavingDoes the area rely on just one or two industries?
E.g. if the area relies on mining, check out how long a life the mine still has left.ALso, properties in very small towns can take longer to sell, which can be a setback of course if you want to or need to sell within a reasonable timeframe.
[biggrin]
Some advice I once got is that 95% of people do the same thing, so if you want to succeed, you just have to be the 5% that do the opposite.
I’d say that a lot of investors dismiss small towns from the start because in their belief systems, small towns are risky. Saying that, you really should take a good look at all the aspects of your prospective properties/towns.
If it’s not too far and you’re taking a serious interest in the town, why not go take a day trip there and chat with the locals about the area. They could probably give you more info than most investors can get via statistics.
Well, I agree with secretgnome in that you shouldn’t always follow the pack, but I also agree with other comments that you need to check out what the town does as far as indusrty, employment, population etc goes.
I’d also check what proportion of the population rent and what the vacancy rates are.
You can get the renting % from ABS and the vacancy rates from RE agents in the town.
If the town has a high rental % and a low vacancy rate then I’d consider it (as long as population isn’t declining).
If they have a low number of renters and high vacancy rates then I’d steer clear as your house may sit vacant too.
Well, I am sure Steve didn’t say “don’t do any research on the town”, Russ! Thinking outside the square doesn’t mean not checking for floodzones, industry, employment, crime, population decrease/growth, capital gain or loss in the last few years in the town. Due diligence is essential. I am sure you would have wanted those people who you spotted for, to do all their checking right? It only takes a few hours to look up so many things about a town- what’s wrong with that? You wouldn’t buy shares without reading a prospectus, well, I wouldn’t buy a house without doing PLENTY of research.
Make google.com your friend, folks.
kay henry
Hi Staf,
[quoute]Are you saying that in a smaller populated town the luxury to choose tennents may be limited?[/quoute]
at most times it is – but as long as you do your due diligence and get proper reports on the tenant (rental history payments), job security to pay the rent – get referrals from their previous landlords, references from their employers and employ a rental manager, you should be right.
regards,
George.“If You never never ask, you’ll never never know”
Thankyou all so much for your input it’s much appreciated. I haven’t given up on my small town but I will certainly ask more questions and do more research. [cap]
Originally posted by kay henry:You wouldn’t buy shares without reading a prospectus,
kay henry
Prospectus cant tell you everything
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